August 17, 2022
How Businesses Can Leverage Energy Incentives
Incentives of many kinds can offer businesses big value to do more with their built environment.
New or expanding businesses have a lot to consider when it comes to selecting the right location. From important infrastructure access to attracting skilled workers, there are many variables in a location selection that can significantly impact business objectives. Incentives are a way to decrease the costs associated with location selection and assist businesses in achieving their goals.
Economic Development organizations across the country work with a variety of partners to develop attractive business environments to make their state or city more enticing to new or expanding businesses. When businesses grow, they add jobs and spur economic growth in local communities throughout the state.
The local energy partner can be a big component because electric power plays such an important role in business and the industry. When businesses look at potential locations to build or expand their business, they look at local electric rates as part of the overall cost structure planning for the lifetime of the business. When other selection factors are approximately equal, electric rates may become the deciding factor for ultimate site selection. For example, Ameren Missouri’s electric rates are 19% below the national average.
On top of competitive base rates, energy partners also often have a variety of incentives to make their service territory stand out. Take Ameren Missouri’s Economic Development Incentive rider. The current incentive provides qualified growing businesses one of the most competitive discounts from base electric rates that are already below Midwest and national averages. As part of Ameren Missouri’s Smart Energy Plan, this incentive is a benefit offered to qualifying new and existing businesses seeking to locate or expand in Missouri. The Smart Energy Plan, which was developed with the passage of Missouri Senate Bill 564, is improving energy service for Ameren customers throughout the service territory with upgrades, investment and new programs.
This incentive has reach beyond the specific businesses taking advantage of it as well. The additional energy requirements from a qualifying business customer ultimately help enhance system efficiencies and distribute the fixed costs of generating and delivering electricity across a broader customer base, thus helping to keep rates lower for all customers. Also, the attraction of new jobs and investment multiplies throughout the region in the form of increased spending in retail establishments, new housing starts and population growth.
There are other kinds of incentives for cost-saving upgrades that can help businesses achieve goals and get cash back to reinvest. Some examples of Ameren Missouri incentives1 include:
Energy efficiency incentives: If something saves energy, chances are there is an incentive available to help reduce upgrade costs to more energy-efficient equipment. That’s evident with Ameren Missouri’s BizSavers® program that utilizes several different incentive tracks to provide quick and easy savings, as well as customized solutions for businesses of any size. These can include upgrades you generally think about, like with HVAC equipment or lighting, but also for specialized equipment like commercial cooking or refrigeration.
Charging port installation tax credits: Electric vehicles (EV) are becoming more common in Missouri because they are fun and exciting to drive, easy to charge and cost less to fuel and maintain than their combustion engine counterparts. Businesses can recognize real value by installing a charging port; they can become a destination for EV drivers, increase visit time which can result in increased sales, and give business owners a way to stand out from their competition. To make these a reality, the federal government offers tax credits to business customers to help offset the cost of installation.
Navigating the available incentives for your business can be daunting. Fortunately, most energy partners have teams of professionals who are experts in a wide variety of state, local and other incentives and can serve as their customers’ liaison to help connect appropriate parties. They work to understand your challenges and collaborate with you to help identify the best location, saving opportunities and energy solutions to meet your unique growth requirements. They can also usually access a database of available properties in the service area that are prescreened and qualify to meet current operational standards.
1Incentives are subject to change. Visit the Ameren Missouri website for up-to-date information on available incentives.
Learn more about how you can take advantage of Ameren Missouri’s growth-powering incentives.
